17.35: The FTSE 100 closed down 16.97 points at 7029.85 as the post-election rally ground to a halt.

Greece continues to teeter on the brink of default, with reports that it will manage to stump up a €750m repayment to the IMF tomorrow failing to allay investor fears about the country's future in the eurozone.

US stocks opened lower as traders opted to take some profits off the table after last week's gains following robust monthly jobs data. The US Dow Jones was down 35.3 points at 18,155.8, while Germany's DAX and France's CAC finished in the red.

Lead lacking: After Friday’s US jobs report, no important US economic data was released today, with little due all week, and corporate news was also thin on the ground

But miners helped keep London losses from getting too out of hand after an interest rate cut by China, the world's biggest commodities consumer.

'There are no prizes for repaying your debts, and that is exactly what Greece is experiencing right now.' said David Madden of IG. 'The repayment by Greece is good news for all involved but you wouldn’t think it by looking at the markets' muted reaction.

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'However if Greece welshed on its agreements then the markets would reflect it. The move by Athens can hardly been seen as a victory, and the money just keeps going around the circle between the IMF and Greece. Today’s repayment is by far the smallest that the nation must make within the next few months.'

On the Chinese rate move, he added: 'The aggressiveness of China to loosen monetary policy indicates it is not afraid to do whatever it takes to prop up the economy, and this will be favourable for mining stocks which have seen sharp decline in recent years.'

Royal Mail was the biggest riser after it emerged that rival postal firm Whistl had suspended deliveries because private equity backer LDC had pulled out of funding to help expand the business. Shares in Royal Mail were 4 per cent or 18.7p higher at 497.6p.

The fall-out from the election continued to be felt among housebuilders, which posted further gains after Labour's election defeat ended the prospect of a mansion tax. Taylor Wimpey was 4.7p higher at 180.4p and Persimmon lifted 22p to 1768p.

British Gas owner Centrica also posted further gains, up 2.4p to 280.6p, after surging by 8 per cent on Friday amid relief that the industry had avoided the threat of an energy price freeze and tighter regulation.

Accountancy software firm Sage rose 2 per cent or 12.5p to 556p following its upbeat half-year results last week.

Supermarket giant Tesco also improved 3.7p to 232.5p amid speculation that a bidding war could lift the sale price of its Dunnhumby business above £2billion.

Shares in funeral services business Dignity slipped 2p to 2081p, despite the firm saying its underlying profits improved 38.8 per cent to £35.8million in the first quarter of the year.

The decisive election result continued to boost the pound, which was stronger against the US dollar at $1.56 and a cent higher against the euro at €1.40, despite the Bank of England's decision to keep interest rates on hold.

The biggest risers on the FTSE 100 Index were Royal Mail up 18.7p at 497.6p, Taylor Wimpey up 4.7p at 180.4p, 3i Group, up 13p at 515.5p and Sage Group up 12.5p at 556p.

The biggest fallers on the FTSE 100 Index were CRH down 54p at 1837p, St. James's Place down 22p at 940.5p, Mondi down 25p at 1322p, Associated British Foods down 49p at 2879p.

17.02: The FTSE 100 closed down 16.97 points at 7029.85. More to come.

15.00: The Footsie's advance ran out of steam in late afternoon trade, with the index retreating in tandem with an opening decline by US blue chips as investors consolidated strong gains made last Friday following the surprise UK election result and a robust US jobs report.

With an hour and a half of trading to go in London, the FTSE 100 index had slipped 13.0 points, or 0.2 per cent lower to 7,030.8, well below the session peak of 7,083.72 which was not far from its all-time closing peak of 7,103.98 hit on April 27.

UK blue chips were been boosted earlier by strength in heavyweight commodity stocks following another Chinese rate cut – the third in six months – and having surged on Friday after the narrow election majority for David Cameron’s Conservatives allayed fears over UK political uncertainties.

In early Wall Street trading, also after strong gains on Friday, the blue chip Dow Jones Industrial Average fell 27.2 points to 18,163.9, while the broader S&P 500 index shed 1.7 points at 2,114.4, but the tech-laden Nasdaq Composite managed gains of 1.2 points at 5,014.8.

After Friday’s US jobs report, no important US economic data was released today, with little due all week, and corporate news was also thin on the ground.

Jasper Lawler, market analyst at CMC Markets said: ‘Another rate cut over the weekend in China was a boost to domestic markets but the affect looks more muted in Europe and the US which both finished last week strongly and are pulling back on Monday.

‘The April US jobs report on Friday indicated a modest bounce back that eased both economic growth and rate-hike fears and helped stocks move higher.’

The mood in European markets was also cautious, with Germany’s Dax 30 index off 0.5 per cent and France’s CAC 40 index down 1.3 per cent amid real worries about a possible Greek debt default.

Eurogroup finance ministers are meeting again today to discuss bailout condition proposals with the Greek government ahead of a Tuesday deadline for another €750million repayment by Athens to the International Monetary Fund.

Competition dimished: Royal Mail was the top FTSE 100 riser, up 3 per cent or 16.5p to 495.5p after it emerged that rival postal firm Whistl has suspended deliveries

12.35: The Footsie consolidated its position above the 7,000 level in lunchtime trade, adding modestly to Friday's post-election surge as miners celebrated another cut in interest rates from top metals consumer China, with the Bank of England today leaving its monetary policy unchanged once again.

By mid session, the FTSE 100 was 10.5 points higher at 7,057.3, albeit easing back from an earlier session peak of 7,083.72 having surged on Friday after the UK election surprised with a majority victory for David Cameron’s Conservative party.

The decisive election result continued to boost the pound, which rallied against both the euro and dollar, to $1.3879 and $1.5487 respectively, despite the Bank of England's decision to keep interest rates on hold.

James Hughes, chief market analyst at etoro said: ‘The BoE has predictably left rates on hold as the central bank looks towards the new Conservative government for direction.

‘Expectations are that we will see a new budget statement from George Osborne in the coming weeks as the chancellor aims to convince the country that the Tory plans to boost the health system, cut taxes, halt rail fares and cut the deficit are possible.

He added: ‘Later this week we will also get the chance to hear Mark Carney's inflation report as he outlines the future.

The markets and the government will be interested in hearing just when the governor thinks inflation will return to around the 2 per cent bench mark. However even if this is not in the near term there still seems no argument to move rates in either direction.’

But Footsie’s gained were eroded by weak showings from European markets, with Germany’s Dax 30 index down 0.5 per cent and France’s CAC 40 index dropping 1.5 per cent on worries over a possible Greek debt default.

Eurogroup finance ministers meet again today to discuss a cash-for-reforms deal with the Greek government ahead of a Tuesday deadline for another €750million repayment by Athens to the International Monetary Fund.

Commodity issues were among the stocks on the front foot in London after the latest effort by Chinese leaders to bolster the performance of the world's second largest economy propped up miners, with Rio Tinto adding 47.5p at 3,046.0p, and BHP Billiton ahead 18,5p at 1,579.0p.

Even mid cap platinum miner Lonmin was higher, up 0.6p at 142.6p after it said it would cut up to 3,500 jobs on predictions that metal prices will remain low for at least the short term.

Royal Mail was the top FTSE 100 riser, however, up 3 per cent or 16.5p to 495.5p after it emerged that rival postal firm Whistl has suspended deliveries because private equity backer LDC had pulled out of funding to help expand the business.

The Dutch-owned company - formerly known as TNT - said it was now reviewing the viability of rolling out its delivery service from the areas where it currently operates. Whistl employs around 2,000 workers on its postal delivery business in parts of London, Liverpool and Manchester in direct competition to the Royal Mail.

Elsewhere in the top flight, supermarket giant Tesco added 3.3p to 232p amid speculation that a bidding war could lift the sale price of its Dunnhumby business above £2billion.

Data giant Neilsen is said to be the latest firm to express an interest in the operation, which operates Tesco's Clubcard loyalty scheme. Tesco also announced today that it was appointing Deloitte as its new auditor after 32 years with PwC.

On the second line, shares in funeral services business Dignity rose 4p to 2,087p after it said underlying profits improved 38.8 per cent to £35.8million in the first quarter of the year.

10.10: The Footsie extended its gains as the morning session progressed, building on Friday’s post-election surge as commodity issues got a boost after China's central bank cut interest rates for the third time in six months.

By mid morning, the FTSE 100 index had climbed 25.91 points higher to 7,072.7, pushing back up towards its all-time closing peak of 7,103.98 hit on April 27.

European markets stayed lower, however, with Germany's Dax 30 index down 0.4 per cent and France's CAC 40 index dropped 1.3 per cent as Greek default worries dominated on the Continent.

China rates: The latest effort to boost the performance of the world's second largest economy propped up heavyweight mining stocks today

There is another Eurogroup meeting today to discuss a cash-for-reforms deal with Athens, and Greece faces a deadline tomorrow for another €750million repayment to the International Monetary Fund.

Chris Beauchamp, senior market analyst at IG said: ‘Greece once again stands on the naughty step at the latest Eurogroup meeting, while a major repayment to the IMF looms.

‘It seems unnecessary to go over the arguments at this stage, since the most likely outcome is another fudge that kicks the can a little further down the road, without actually making any progress in solving the underlying issues.’

Asian markets pushed higher overnight after the rate cut by The People’s Bank of China led to an almost 2 per cent gain by the Shanghai Composite, while Hong Kong’s Hang Seng and Japan’s Nikkei were also stronger.

Markets were also cheered by Friday's strong performance from the Dow Jones Industrial Average which enjoyed its best session in two months following the release of better-than-expected US employment figures.

On currency markets, the pound slipped back against the dollar to $1.5412 after an election-inspired bounce on Friday, and was flat versus the euro at €1.3798, with the market focus turning to major macro-economic data scheduled later this week and the Bank of England’s latest interest rate decision due at midday.

The BoE decision - the first under a new Conservative government - is unlikely to surprise anyone, with interest rates seen staying steady at the record low of 0.5 per cent maintained since 2009.

But with an Inflation Report due out on Wednesday, expectations are growing the BoE could remind investors then that the next move is likely to be a rate hike, despite subdued consumer prices.

The latest UK wages and jobless data are also due out on Wednesday, all of which should keep sterling cautious.

Among equities, the latest effort to boost the performance of the world's second largest economy propped up heavyweight mining stocks in London, with Anglo American gaining 28p at 1,143.5p and Glencore adding 6.5p to 309.1p.

Oil and gas stocks were also on the rise as the price of Brent crude headed back above $65 a barrel, with Royal Dutch Shell up 6p to 2,078p, BP ahead 4.4p at 465.7p, and BG Group adding 8.0p at 1,198.5p.

The fall-out from the Conservative election also continued to be felt in London as housebuilders posted further gains as Labour's defeat ended the prospect of a mansion tax. Taylor Wimpey was 4.1p higher at 179.8p, Persimmon added 33p to 1,779p, and Barratt Developments rose 7.0p to 556.5p.

And British Gas owner Centrica gained another 1p at 279.2p after surging by 8 per cent on Friday amid relief that the industry had ducked Ed Miliband's threat of an energy price freeze and tighter regulation.

Supermarkets stocks were in demand as well after slumping last week on the back of worse than expected end of year figures from Sainsbury and William Morrison, helped by reports of consolidation moves in Europe - with Belgian chain Delhaize and Dutch group Ahold said to be considering a merger

Sainsbury’s gained 4.3p at 282.3p, Morrison’s added 4.8p at 185.8p, and Tesco rose 5.6p to 234.5p helped by weekend press reports that a bidding war could be in store for Dunnhumby, the customer data specialist behind its Clubcard loyalty scheme.

Elsewhere in the top flight, accountancy software firm Sage was the biggest FTSE 100 gainer, adding 3 per cent or 20p to 563.5p, rallying after post-results falls last week as broker Goldman Sachs raised its target price for the stock to 565p from 540p.

And generic drugs firm Hikma Pharma gained 40p at 2,050p after US broker Stifel hiked its rating to buy from hold.

But Aberdeen Asset Management was a blue chip casualty, shedding 0.6p to 451.2p after French broker Societe Generale downgraded its rating for the fund manager to hold from buy and trimmed its target price to 485p from 490p following a disappointing update last week.

And Intercontinental Hotels Group led the FTSE 100 fallers after jumping to a record high on Friday following a trading update, with some profit taking sending its shares down 31p to 2,789p.

On the second line, life sciences group Diploma dropped 3 per cent or 23.5p lower to 823.5p as it disappointed investors with a cautious outlook, saying it still sees ‘headwinds to organic growth’. Broker Numis Securities cut its rating for Diploma to hold from add.

08:45: The Footsie ticked higher in early trade, failing to see any post-election hangover thanks to strength in commodity stocks after another Chinese rate cut, with the delayed Bank of England interest rate decision due to be unveiled at midday today, although no change is again expected.

In early trade, the FTSE 100 index was up 21.9 points at 7,068.7, having closed 160 points higher on Friday - within touching distance of a record high of 7,122.74 points set last month - as the slim election majority for David Cameron's Conservatives ended fears of weeks of political uncertainty.

European markets were lower, however, with Germany's Dax 30 index falling 0.1 per cent, while France's CAC 40 index was off 0.9 per cent as once again Greece remains the primary concern for investors on the Continent.

Decision day: The Bank of England will announce its latest monetary policy decision at midday today having delayed an announcement because of last Thursday's UK election

There will be yet another eurogroup meeting in Brussels today to further consider the Greek government's bailout condition proposals, with Athens also due to repay €750million to the IMF tomorrow. Eurogroup officials are reported to be concerned that there is a very real chance of Greece going bankrupt.

But worries over Greece were tempered by news overnight that the People’s Bank of China had cut its interest rates for the fifth time in six months following further weak data from the world's biggest consumer of commodities.

Although the move was smaller than anticipated, it helped boost Asian markets today, with Wall Street's pre-weekend strength also supportive following a robust US April jobs report which maintained expectations that the Federal Reserve will be looking to raise US interest rates later this year.

The Bank of England will set UK borrowing costs today, with its Monetary Policy Committee expected to leave interest rates at 0.5 per cent – where they have been since March 2009.

The MPC made the decision at its meeting on Thursday and Friday last week, having delayed its usual schedule due to the UK election.

Craig Erlam, senior market analyst at Oanda said: 'The view among many is that the Tory majority that was voted in last week may delay any rate hike from the BoE as the rate of cuts will be potentially much greater which could act as a drag on the economy for the next couple of years.

He added: 'Given that the pound rallied following the (election) result though, I’m not sure the wider market agrees.

'I think we will see significant cuts, but the economy is on a much better footing than when they came to power in 2010 and it may be able to absorb them much better than it did previously.'

However some commentators have suggested that if this week's batch of economic figures - including unemployment and wage growth data and that latest BoE inflation report on Wednesday - are strong then the bank could be pressured into a rate hike sooner rather than later.

Stocks to watch:

TESCO – The retail giant is in talks with bankers to put its mobile business up for sale in an effort to divest non-core assets, the Financial Times has reported, citing people familiar with the matter.

Meanwhile, US consumer research giant Nielsen is poised to plunge into the £2billion auction for Dunnhumby, operator of Tesco’s Clubcard loyalty scheme, according to the Sunday Times. And the Independent said the supermarkets group has dumped its auditors of 32 years, PwC, in the wake of last year’s £263million accounting scandal.

ROYAL BANK OF SCOTLAND - The UK government may begin selling part of its stake in the rescued bank at a loss later this year.

HSBC - The UK's largest bank is setting aside £8billion to increase its loan offerings to small and medium-sized businesses across the UK.

TSB - Spain's Sabadell said it had received around 71.2 per cent acceptances for its bid for TSB.

BP - A US federal appeals court said the oil major deserves the right to review of some damage claims awarded to people and businesses in connection with the 2010 Gulf of Mexico oil spill.

LONMIN - The South African platinum producer has maintained its platinum sales forecast for the year despite technical issues which hit its smelters earlier this year, as it posted a smaller first-half loss.

CAIRN ENERGY - The oil explorer said its oilfields offshore Senegal could hold more than a billion barrels of oil and the company and its partners plan to drill up to six new wells over three years.